The Gunners put up a toothless and uninspiring display at the Emirates Stadium as Liverpool pounced on that to relaunch their bid to secure top four.
After a poor first half showing from both teams, Liverpool took the lead midway through the second half, thanks to substitute Diogo Jota.
Mohamed Salah got the visitors’ second four minutes later before Jota made sure the victory was sealed during the dying embers of the game.
In an interview with Sky Sports, Arteta said: "We completely deserved to lose the game. They were better in every department and deserved to win the game with the margin they had, or even more. I accept responsibility for the way we played.
"They made the right decisions, we didn't. It is my fault. I have to set the team up to perform in a different way and that is it.
“Congratulations to Liverpool because they were exceptional. That showed the difference between the two teams - that when they play at that level, the margin is incredibly high.
"I don't have to use any excuses - that we don't have five or six players - the standards are much higher at this football club and I have to get them to perform at that level.
“It was technical as well. We gave every ball away and could not put three passes together. The basics weren't there. If you do that against this kind of opponent, you get punished like we have.
"At the moment I am in shock. I didn't expect that because of the way the team trained. It is a challenge. A challenge brings an opportunity. If you have courage and you represent a club like this, you have to stand up and take it."
