Bakary Sako blasted Wolves in front with a superbly-struck 25-yard free-kick from the corner of the box in the 22nd minute after the impressive Kevin Doyle had been fouled.
But against the run of play Jay Emmanuel-Thomas fired a 53rd-minute equaliser after Sam Baldock had robbed Richard Stearman and crossed low from the right, only for Wolves full-back Matt doherty to fire home an 85th-minute volley to secure all the points.
O'Driscoll, who substituted experienced midfielder Neil Kilkenny after only 36 minutes, said: "We couldn't use Neil's passing ability because we were defending too deep and allowing Wolves to dominate us.
"At half-time I told the players that if they were going to lose at least be brave about it.
"We made the game much tighter after the break and might even have won it, but for a brilliant save from Sam Baldock.
"I would have been happier if we had played as we did in the second half for 90 minutes, but Wolves are a quality team at this level and at least we matched them for part of the game.
"We need to strengthen our squad, but have to do so without blocking opportunities for our young players, so it isn't easy to find the right personnel."
Bristol were all over the place defensively as the visitors dominated the opening 45 minutes, forcing several saves from home goalkeeper Frank Fielding.
But the hosts were a different team after equalising and Wolves keeper Carl Ikeme made a brilliant double save from Baldock after 63 minutes and that was matched by Fielding's reaction stop from Doyle's shot seven minutes later.