O'Loughlin said he could live with his players making skill errors with the round ball or getting confused with their positioning in Saturday night's game, but would not compromise on their level of intensity.
"I was really disappointed in some of our efforts," O'Loughlin said.
"Our ability to apply pressure was non-existent in that first half and for a team that prides itself on pressure and being able to chase and tackle and that unrelenting presence, it was disappointing – that's the harsh reality of it.
"I think our guys got a really big wake-up call tonight. So some guys got found out that their efforts and their pressure needs to be at a higher standard than what it was."
However, O'Loughlin said Lance Franklin had enhanced his reputation against Ireland despite arriving just three days before the game.
The Sydney Swans recruit had a quiet first quarter, but worked his way into the game thereafter. Franklin kicked Australia's second over and was effective in the centre ruck contests, forming a solid partnership with Australian captain Daniel Wells.
"He was absolutely brilliant tonight, one of our best players," O'Loughlin said of Franklin.
"I think the way he went about playing tonight he enhanced his reputation among the staff and the players.
"I thought he had a real crack at it and was one of the shining lights of tonight."
Franklin will miss next Saturday's second Test at Croke Park to attend former Hawthorn teammate Brent Guerra's wedding.
The 26-year-old says it's hard to leave his Australian teammates after their loss to Ireland in the first Test of the International Rules Series.
Franklin was one of Australia's best players in the Indigenous All-Stars' 22-point loss to Ireland at Breffni Park in Cavan, but is set to board a return flight for Australia on Sunday morning.
The Sydney Swans' recent prized signing said on Saturday night he would leave Ireland with mixed feelings.
"I would love to stay here but I've got to get back for one of my best mate's, Brent Guerra's, wedding," Franklin said.
"It's going to be hard leaving all the boys behind and I'd love to be out there for that Second Test, but unfortunately I won't be able to get there."
The future of the International Rules Series has been questioned by some sections of the media, but Franklin said the chance to represent Australia as part of an all-indigenous team had been "unbelievable".
"I've tried to get this up and running for a long time and to see the boys out there today was exceptional and to represent indigenous people and Australia means the world not only to me but all the boys in there tonight," Franklin said.
"So hopefully this concept can keep running and we can get the victory next week and from there we can keep it going."
Franklin played a crucial role for the Australians at Breffni Park with his work in attack and as a ruckman at centre bounces.
"It was a little bit different," Franklin said of his turns in the ruck.
"I haven't played in the ruck since I was a little fella, so I hope John Longmire doesn't have any plans there."
