The Light Blues missed the chance to go back into second in the Ladbrokes Premiership as Dolly Menga’s first-half goal was enough to separate the sides.
It leaves the Rangers manager without a victory on his travels in four away league fixtures and was the second time he’s tasted defeat since taking over the reins at Ibrox this past summer.
Gerrard said: “We’re very disappointed in terms of the result. That’s three big points dropped. We have to take responsibility for that.
“The performance was OK in terms of possession and we controlled a lot of the game.
“But we were nowhere near good enough in the final third. We could be playing for another 180 minutes and wouldn’t look like scoring.
“The players and ourselves have had a lot of praise thrown our way for scoring heavily and being creative and being ruthless. But today we saw none of that.
“So we have to take the criticism when we don’t perform.
“I’d like to give Livingston a lot of credit for the way they defended and they maybe deserve credit. But at the same time we didn’t deserve to score.
“In football, if you have a setback or a bump you have to react and I expect a reaction from the team, I expect a big reaction from certain individuals.”
Livi continue to be the surprise package of the campaign so far and only goal difference is keeping them from sitting in second spot.
But despite their unbeaten run under his charge, Gary Holt is not getting carried away with his side’s stunning win.
“I’ll enjoy tonight like everyone else,” said the Livi boss, who has now guided his team to four wins and a draw from his five games in charge.
“But until we are mathematically safe, that’s when I’ll start looking at what else we could achieve.
“Make no bones about it, we were the favourites to go down. We are still the favourites. We could lose seven games in a row. It’s early days.
“It’s one game. You make a big deal of it because we have beaten Rangers. But they are all big games.
“I don’t put too much onus on how big games are or what it means. It is three points at the end of the day.”