After seeing its rival move 10 points clear with a victory over Fulham, City could only shave one point off that by failing to defeat Liverpool, instead drawing 2-2 at the Etihad Stadium.
Though City famously clawed back an eight-point deficit late last season to take the title, Hart admits that his side must improve quickly if it is to do the same one year on.
"Unfortunately it's a big gap and it's getting too big for our liking but we've got to move forward," the 25-year-old, who is expected to line up for England against Brazil in midweek, told talkSPORT.
"We've put ourselves in a worse position than we would like to be but we know we'll always be there [in the title race]."
Roberto Mancini's men have a brilliant Sergio Aguero equalizer to thank for their point, despite taking the lead through Edin Dzeko. City was pegged back by two equally good strikes from Daniel Sturridge and Liverpool captain Steven Gerrard.