A mistake from Gary Cahill allowed Alexis Sanchez to open the scoring at the Emirates, before Theo Walcott and Mesut Ozil finished off the win in order to hand the Gunners a victory over their rivals for the first time in five years.
"I think that we didn't have the right attitude from the first minute," said Conte, according to Sky Sports News. "After today we are thinking we must work a lot because we are a great team only on paper. It is always a team problem rather than individuals, When nothing works it is very hard for a player to play well.
"I don't want to talk about [Cahill's mistake]. It is not right for the player. We win and lose as a team. If someone thinks this team is ready to fight, I think we must wait to improve a lot to come back a great team on the pitch, not just on paper.
"We have not got the balance and now is the moment to consider everything. It is incredible to concede three goals. We must have last season present in our mind to not repeat the mistakes. We must reflect a lot to find very soon the right way."
Conte's Chelsea side now hold eighth place in the league standings.