The Ibrox boss admitted his side could have played all day and not found the net at the Tony Macaroni Arena.
Dolly Menga gave Gary Holt’s brave Lions a shock 1-0 win as Gerrard’s side slipped up away from home for the fourth time this season.
The result sees Gers slide down to sixth spot in the Ladbrokes Premiership and they now trail Craig Levein’s table-topping Hearts by eight points just seven games into the season.
The Tynecastle men visit Ibrox next Sunday and Gerrard has now issued a stark warning to his stuttering squad.
“Hearts was a must-win game whether we won, drew or lost today,” he said. “They are the team to chase right now, they have come out of the blocks flying.
“It is still early on in the season so we can recover from a result like this like we recovered from the Old Firm loss. But this can’t keep happening.
“When we come and play teams like Livingston we have to try and take maximum points, otherwise we won’t be in the title race.”
Rangers dominated possession but Livingston did much more with the ball they had.
Menga smashed home seven minutes before the interval and while Rangers huffed and puffed after the break, they played into the hosts’ hands with a string of misplaced passes which Lions defensive pair Craig Halkett and Alan Lithgow lapped up.