The Reds were beaten 2-1 at Molineux on Tuesday night, with Andre's winner coming on 94 minutes.
"For 65 minutes, Liverpool were desperate tonight, really poor," Gerrard said on punditry duties for TNT Sports.
"They didn't play with the right tempo, the right quality."
On Rio Ngomoha's introduction, Gerrard also said: "He's doing more in a short cameo than (Cody) Gakpo in 65 minutes. So he deserves a start. (Slot) has to start the kid on Friday night.
"Wolves were very comfortable, they contained Liverpool really well."
On Liverpool's defending, Gerrard said of the first goal: "It was a basic ball up to the target man, they've got a two on one there, that's got to be dealt with. For the second goal, it's a poor ball from the goalkeeper (Alisson) and there's no reaction.
"If they want to progress in the FA Cup they've got to defend a lot better. They say 'we weren't good enough in the final third' but they've got to defend as well."