The Gunners were knocked out of the FA Cup by Liverpool after an own goal from Jakub Kiwior and late strike from Luis Diaz secured the victory for Jurgen Klopp's side.
Arteta's side spurned several opportunities to score throughout the game, prompting fans on social media to urge the Gunners to sign a new striker in the January transfer window.
Arsenal legend Ian Wright said on X, "we need a killer", but Arteta admitted that a fresh acquisition isn't on the cards as things stand.
"At the moment it [signing a striker in January] doesn't look realistic.
"My job is to improve our players and get better results with the players we have," he told beIN Sports after the game.
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The Arsenal boss went on to praise the performance of his players, who now have a short break before facing Crystal Palace on January 20.
"Well the performance was there and the amount of chances too.
"We just have to win the game, but we lost it and we are not capitalising. To win games we need to capitalise.
"When you are better than the best team in Europe and you generate that amount of chances...I have not seen a team do it against them like we have done it. It is not enough. The reality is, it is not enough.
"Listen [do I say] play worse than Liverpool, be worse and we will win the game. When my team plays with this confidence what can I do? I am still behind them 100%.
"It is what it is and we have to continue to play the same way and be more efficient."
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