The 47-year-old actor, who along with his wife, Jada Pinkett Smith decided to not attend the Academy Awards next month following the diversity row, was on "Good Morning Britain."
"We have to understand the spirit of what's happening. This is not about us and them, it's about we. I'm a member of the Academy, so this is a problem that we all have to solve collectively.
"The only reason it's an issue this year is because it feels like a regression. So to me Hollywood is experiencing a regression that is reflective of a social regression America is experiencing. There's something happening in our country that's being reflected in Hollywood, that's being reflected in the Academy," Smith said.
"It has nothing to do with me being nominated or not, or wanting to win awards or not. That is so frivolous. I've been nominated for Academy Awards and I've never lost to a white person. I lost to Denzel (Washington) and then I lost to Forest Whitaker," he said.
Apart from Smiths, filmmaker Spike Lee has also decided to not attend the Oscars night this year.