Danny Welbeck struck twice either side Milos Kerkez's effort just before halftime for the 2-1 win in today's early kickoff at Falmer stadium.
Former England goalkeeper Green said: "There has been nothing in terms of a response from Liverpool in finding their backbone, finding their spine.
"We talked about this Brighton side with James Milner and Danny Welbeck in the middle of the team...
"It’s a backwards step this. The spine of the team is just not there, they’re just looking around thinking what’s going on."
Liverpool great Gerrard also stated: "I thought Brighton were excellent. They came out firing with energy and intensity. They thoroughly deserved the three points today.
"Pre-game it's a massive blow to lose (Mohamed) Salah. Then the injury to (Hugo) Ekitike early on is a massive blow. Liverpool lost a lot of pace."