Zinedine Zidane was unimpressed with his side's defensive display after suffering his first defeat as France head coach against Italy on Thursday, but described the setback as "part of the process".
Les Bleus took an early lead at San Siro through Michael Olise to put one foot in the UEFA Nations League quarterfinals, but were pegged back by a Francesco Pio Esposito double and Davide Frattesi strike.
Italy seized control of the game in the second half after the two sides went in level at the break following an opening period dominated by Zidane's side.
Frattesi's goal arrived three minutes after Sebastiano Esposito had missed a penalty, and France conceded a second spot kick, converted by the younger Esposito brother, to take the game beyond the visitors.
"We started well and we were good in possession, but in the second half we ran into difficulties, especially defensively," Zidane told a press conference.
Asked if the team lacked courage, he replied: "No, quite the opposite. We stayed in the game, we did well in possession, especially in the first half, but in the second half we caved in a bit, especially after 2-1. It's part of the process."
France were twice denied by the woodwork and had 60 per cent possession and 18 attempts during an entertaining game as they slipped behind Italy into second place on head-to-head record in Group A1.
Zidane's side host Turkey, who have failed to pick up a single point thus far, in their final game on Sunday, while Italy travel to Belgium, who are one point behind in third.
"The most important thing is creating chances," Zidane added.
"Hitting the post had an impact, but I'm not disappointed. I would have been if we hadn't created good possession. What we need to analyse is why we weren't at the right level off the ball."
MANCINI TIPS ESPOSITO FOR RECORD
France were without star attackers Kylian Mbappe and Ousmane Dembele for the trip to Milan, but Zidane denied that their absence impacted the performance and revealed that Real Madrid striker Mbappe could return against Turkey.
"I think all the players were focused. As I said, we were a little less focused and less effective in the second half," Zidane said.
"I hope (Mbappe) can play against Turkey. That is the plan, we decided not to risk him tonight because he had a little problem."
Italy coach Roberto Mancini's impressive start to his second spell continued as his side moved top and stretched their unbeaten run to four games.
Esposito's double caught the attention as the Inter Milan striker took his international tally to nine goals in 14 games, and Mancini believes he could even eye the long-standing national record held by 1968 European champion Gigi Riva.
"Let's hope he scores a lot more goals," Mancini said.
"Gigi Riva has been up there on 35 for a lifetime. Let's hope someone surpasses him. We need goals from Pio and the others too, but he can score a lot."
Esposito could have had a hat-trick had his older brother not taken – and missed – Italy's first penalty of the match during the second half, a moment Mancini revealed was not part of the plan.
"Pio is first choice and then Sebastiano. It was a family thing," Mancini laughed.