Replays appeared to show no contact between Santi Cazorla and West Brom defender Steven Reid, but Olsson thinks introducing technology to help referees who miss a dive is not the way to go.
"I think there needs to be space for the human factor," said Olsson, whose side lost 2-0 after Mikel Arteta scored twice from the spot.
"I think goal-line technology, that's fair enough, but apart from that you need to to keep the momentum.
"That's why this league is so good because of the tempo, because of the excitement of the pace, and if there were too many challenges I think you'd lose that."
Olsson concedes a penalty should not have been awarded, but had a phlegmatic outlook on the effect it had on the game.
"I think it's a difficult job. Players make mistakes on the pitch and so do referees," he added.
"What I always think is, in the overall season it will even out. You will get some things that go your way which maybe shouldn't be your way and maybe some things that don't.
"It's part of the game and that's part of the human factor I guess.
"The ref doesn't have the privilege of watching replays. I think it's a difficult job and of course the focus should be on the person diving as well."
Olsson did not turn his attention to Cazorla though, instead joining several of his team-mates in an exchange of words with referee Mike Jones in the immediate aftermath.
"I think in a situation like that you just react spontaneously because you think that it's the wrong move [by Cazorla] and it's the wrong decision by the ref and that's why you get frustrated," he added.
"But with that said, it's not the first [incorrect decision], not the last either. It's part of the game."