Arteta believes the 1-0 loss against Sean Dyche’s men has left his side with a mountain to climb as they now sit 15th on the Premier League table.
After a tepid first half which ended goalless, Arsenal went down to ten men when midfielder Granit Xhaka was shown a straight red card after a violent conduct on Ashley Westwood.
The hosts had a double whammy when striker Pierre-Emerick Aubameyang headed a Burnley corner into his own net on the 73rd minute mark.
The Gunners have now lost four consecutive home games in the league for the first time since 1959 and are without a win in the Premier League since a 1-0 victory over Manchester United at Old Trafford on November 1.
In an interview with Sky Sports after the game, Arteta was not happy with his team’s display and insists his side were in control before throwing the game away.
"We threw it away; we were in control of the game. When you give the red card away the game changes. I don't know what it is we have to do to score a goal,” the Spanish coach said.
Arteta was asked about Xhaka’s incident and he admitted it was an unacceptable behaviour from the Switzerland international.
He said: "Yes. In my opinion it is too much willingness to do well, to compete to do everything. We took it to the wrong side of it, when you step over the line you will get punished.
The 38-year-old added: "We are in a worse position now. When you have this type of performance you have to win matches, you have to win as simple as that. It puts us in a difficult position and we have to try again on Wednesday.
"I am clear in my mind what needs to improve. I don't know how to put the ball into the net."