The teen scored a first goal for the Gunners in the Carabao Cup win at Preston in midweek.
Ahead of tomorrow's trip to Newcastle, Arteta said: "I can talk about how good he is right now. At 17, to be in the position he is in at one of the biggest clubs in Europe sums up where he is. He is surrounded by the right people. My prediction is going to be very positive.
"It's rare to see a talent like this at 17 years old, that's true. We didn't do it because it was a gift, we saw a path for him and wanted to show the trust in him.
"I think the biggest thing is to push him. Once you push, grab him from behind. When you see this talent, you have to push him. He has to see he can fly and not cut his wings.
"That shows in the building that there is a pathway and for other players to follow."
Arteta was also asked about skipper Martin Odegaard's fitness.
He added, "Now is the stage he's going to start doing some work with us and see how he deals with pain.
"With the work rate and the amount of hours he has put in, I don't know when he will be ready. Hopefully soon."