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A change in policies is the key to overcoming terrorism, he said, not military campaigns.

"The rise of the so called Islamic State of Iraq and Syria is the direct result of events in Iraq. The U.S. invasion of Iraq, the collapse of the regime there, and then the anarchy that followed [and] the sectarian violence it's directly the result of that."

"I believe very strongly thatthere has to be a change in policies," he said. "The U.S. and its Western allies must bring about a change in their approach to fighting extremism [and] terrorism."

U.S. troops in Afghanistan

Karzai disagrees with U.S.President Barack Obama's decision on Tuesday to slow the withdrawal of troops from Afghanistan.

The current complement of 9,800 U.S. troops will remain in Afghanistan through the end of 2015, according to a statement from the White House. The original plan was to reduce the number to around 5,500 by year-end.

"The U.S. was in Afghanistan for 13 years to fight the Taliban and to fight Al Qaeda and to fight radicalism. And today we have exactly the same fight going on as we did 13 years ago," he said. "The war on terror has failed to bring an end to terrorism in Afghanistan and Pakistan."

"One hundred and fifty thousand U.S. troops in Afghanistan and Pakistan did not defeat [the terrorists], so how can 10,000 defeat them?" he said.

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It's not the presence of troops that will make a difference, Karzai said, "there has to be a change in policies."

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Karzai: There's no love for ISIS in Afghanistan