Zlatan Ibrahimovic struck late in injury-time to rescue a point after Beto had Udinese ahead.
"We struggled to play our style of football and didn't have the sharpness to make the decisions that would pick apart such a well-organised defence," Pioli told Sky Italia.
“When you concede, that also makes it even more complicated against a side that counter-attacks so well. We didn't create many scoring opportunities, but we got to the final third so many times and should've equalised earlier."
He added: "We are conceding really silly goals that are because we lose the ball, because we make the wrong decisions and play too centrally rather than spread it. I don't know if it's a lack of confidence, but it's certainly a lack of sharpness and we must be far more careful with the ball at our feet.
“My lads are well aware when they aren't playing at the best of their abilities. We certainly need to do better and I am convinced we will do, because there is ambition here, but also the ability to understand our errors and work on them.
“I think we lost a little solidity in defence over the last few games, we are not sharp when playing out from defence and that opens up spaces. It's a tactical issue we need to work on and I'm sure the lads will be ready for that."
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