Mercedes grew accustomed to dominating the sport in recent years as they racked up eight consecutive Constructors' Championship wins between 2014 and 2021.
This season has been a very different experience for Hamilton and company as they found themselves in third place, behind Red Bull and Ferrari.
As a Formula 1 veteran and seven-time World Champion, Hamilton knows exactly what it takes to get to the front of the pack.
The Brit believes Mercedes will need to completely rethink their approach in the development stage of their 2023 package.
"From being here for such a long time, knowing how long it takes to change things, knowing how long the processes are, the decisions have to be actioned months in advance of the direction that you're going," Hamilton told Sky Sports F1.
"You're continuously collating data and getting different bits of information that can alter those along the way.
"One thing is that I have 1,000 per cent confidence in my team. I would say just with how the rules are, I know it can be tough for everybody.
"Everyone is going to have to dig even deeper during these next six months, and it's not going to be easy, but I feel like everyone's up to the challenge, up to the task."
Asked about Red Bull and Ferrari, Hamilton added: "If you look at Red Bull, they've got a car that's amazing. They've done an incredible job this year as a whole, every single individual there.
"So, their car will probably just continue to evolve, as probably will Ferrari's, although they've got some teething problems.
"Whereas we've had to take a step back and switch gears and go in a different direction and hope that we're on that right path to be able to get back engaged."