Arsenal's rare setback has moved Villa to within three points of the top spot, while Manchester City closed the gap to two points with a win over Sunderland.
Despite their history of struggling to maintain a lead in the title battle, Arteta is optimistic that his team will handle the pressure.
"The league is unpredictable, and we've faced tough challenges at various stadiums," he said.
"We've gone 18 games unbeaten and are still in a strong position. That's the level of the league, and we're ready for the challenges ahead."
Arteta knows that the team will face many twists and turns in the title race and is focused on bouncing back from the defeat.
He also acknowledged the team's injury problems, including the long-term absence of centre-back Cristhian Mosquera, who will be out for several weeks.
Villa manager Unai Emery has transformed his team's fortunes, leading them from the relegation zone to title contenders, but he remains cautious about their chances.
"We're not contenders for the title yet, but we're feeling better than we did two months ago," he said.
"Arsenal are still favorites to win the title, and we need to maintain a balance in our performances."
Emery's team has won nine of their last 10 matches, but he knows that the season is far from over.
Arteta and Emery will look to their teams to respond to the setback and continue their campaigns.
The title race is far from over, and both teams will need to prove themselves in the coming months.










