Arteta's side finished as runners-up to relentless City for a second successive season after falling just short on the final day.
Arsenal's 2-1 win against Everton was rendered irrelevant by City's 3-1 victory against West Ham as Pep Guardiola's team took the title by two points.
City have won an unprecedented four consecutive titles and have been crowned champions six times in the last seven years.
Their reign shows no sign of coming to an end, with Arsenal's brilliant form in 2024 still not enough to dethrone them.
Arteta knows from personal experience that City's thirst for success is unlikely to be quenched by their latest triumph.
The Spaniard served as Guardiola's assistant when they became the only team in the Premier League era to reach 100 points in 2017-18.
And Arteta acknowledged Arsenal might have to hit that milestone next season if they are to win the title for the first time since 2004.
"We are doing this against the best team in the history of the Premier League by far," said Arteta, whose team managed 89 points this term.
"I was there when City did 100 points. This is what it takes. Nobody has to explain the level.
"In the last 15 to 20 years of the competition, the level is not like it is today. We are competing against an incredible team."
Arsenal blew an eight-point lead in the title race in 2022-23, but this season they pushed City all the way to finish line, winning 16 and losing just one of their last 18 games.
Even that wasn't enough and Arteta tipped his cap to City's incredible consistency.
'Small margins'
"Congratulations to Manchester City. Unbelievable what we have done since December. Every performance has been the highest level we have seen and it wasn't enough," he said.
"We have been pushing so hard. Unfortunately it was a bit short and we could not deliver the big prize.
"We are there and they took it away from us. There is only one way to do it, to have courage and push with everything we have."
Arteta admitted the decisive moments came when Arsenal lost 2-0 at home to Aston Villa on April 14, and then on Tuesday when City survived a nervy 2-0 win at Tottenham.
"For sure Aston Villa at home. Maybe the story would be different. Then the Tottenham game on Tuesday. These are the margins, they are so small," he said.
"We are in the right direction but we need to put everything into it because we need more."
Insisting Arsenal would eventually find a way to surpass City, Arteta added: "We cannot feel sorry for ourselves. We are improving.
"It was an unbelievable season but we are not champions. We will win it. When? I don't know, but we are so close."
Arsenal supporters echoed Arteta's belief that they will win the title in the end.
"It was in City's hand so I can't complain. We're very confident for next season. We'll win the league and the Champions League!" Gunners fan Phoenix Christian told AFP.
Fellow supporter Andrew Walker added: "I'm proud of the boys, we were so close. We're back. Next year is the year."
For now, Arteta plans to recharge with his family before turning his attention to the daunting task of taking on City again next season.
"Rest, have beautiful holidays, that is what we need first because everyone has put every single drop of emotion into this," he said.
"I have my family here and a few friends. Now we are going to have a good dinner."
