Pepe again struggled in victory over West Ham on Saturday.
Arteta admitted: “It is part of Nicolas' development that he needs to open more doors and be more unpredictable for the opponent.
“He is working to give us more options offensively and will improve as he has the talent, an immense quality and the willingness to do it.
“I'll show him footage of what we want and on the training ground I will make him defend in situations where he is full-back and I am the winger.
“He has to feel the moments when the ball is in a position where you are weak and, depending on the steps you take, how it affects the opponents.
“He needs to know where are the spaces for the strikers and when they want the ball delivered in certain areas.
"It's all part of a process."