Mild cognitive impairment (MCI) could be a transitory stage to Alzheimer’s disease (AD) and underlines the importance of early detection of this stage. In MCI stage, though the older adults are not completely dependent on others for day-to-day tasks, mild impairments are seen in memory, attention, etc., subtly affecting their daily activities/routines. Smart sensing technologies, such as wearable and non-wearable sensors, coupled with advanced predictive modeling techniques enable daily activities/routines based early detection of MCI symptoms. Non-wearable sensors are less intrusive and can monitor activities at naturalistic environment with no interference to an individual’s daily routines. This review seeks to answer the following questions: (1) What is the evidence for use of non-wearable sensor technologies in early detection of MCI/AD utilizing daily activity data in an unobtrusive manner? (2) How are the machine learning methods being employed in analyzing activity data in this early detection approach? A systematic search was conducted in databases such as IEEE Explorer, PubMed, Science Direct, and Google Scholar for the papers published from inception till March 2019. All studies that fulfilled the following criteria were examined: a research goal of detecting/predicting MCI/AD, daily activities data to detect MCI/AD, noninvasive/non-wearable sensors for monitoring activity patterns, and machine learning techniques to create the prediction models. Out of 2165 papers retrieved, 12 papers were eligible for inclusion in this review. This review found a diverse selection of aspects such as sensors, activity domains/features, activity recognition methods, and abnormality detection methods. There is no conclusive evidence on superiority of one or more of these aspects over the others, especially on the activity feature that would be the best indicator of cognitive decline. Though all these studies demonstrate technological developments in this field, they all suggest it is far in the future it becomes an effective diagnostic tool in real-life clinical practice.