Paolini prevailed 6-4, 6-2 in just 90 minutes to lift the second WTA 1000 event of her career, becoming the first Italian woman to win the singles title in Rome in 40 years.
Gauff was outclassed during the final, but did notch multiple impressive wins, including over Mirra Andreeva and Qinwen Zheng, during the tournament.
"Definitely proud of the two results, but also disappointed," admitted the American during her post-match press conference.
"It's a bittersweet feeling. Jasmine played great tennis today. Unfortunately, I felt like I didn't bring my best, which I knew I needed today. Overall, a lot to look forward to in Paris.
"I mean, Jasmine played I think great tennis today. I think it was one of her best levels today. I also didn't play my best level. I think it's both. It's not to discredit my opponent. She forced me to play that way.
"Yeah, maybe I could have served better and put more balls in the court, could play better. I definitely could and can. But she played to win today and she deserved to win. With the crowd, I mean, they were fine to me. I didn't think they were being disrespectful or anything."
Gauff produced 125 unforced errors across her last two matches, something which isn't too much of a concern for the current world No. 3.
"I knew today I was trying to be more aggressive because I felt like if I was being passive, she would run me across the court," analysed the 2023 US Open champion.
"Yeah, I think for me I guess, yeah, with the double-faults, it's something I know I have to improve and do better. If I want to make it to the next level, it's definitely something I have to improve.
"Unforced errors? I mean, I was just going for my shots. In the semi, I mean, there is context behind that in the semifinal. The court was super slow. We were both missing balls. It's not so easy to hit a winner.
"The only way to win the points is to force your opponent to make an error or they make an unforced error. Today I think it was just a tough day for me."
Despite the loss, Gauff has been consistent during the Parisian Grand Slam - making the quarter-finals or better each year since 2021, including reaching the final in 2022.
The Americans' only losses during the 2025 clay-court season were to Paolini and Aryna Sabalenka, both of whom are elite players, with Gauff's finalist results in both Madrid and Rome further highlighting her prowess on the surface.
"Hopefully I can get to the final in Roland Garros and maybe the 'third time is a charm' thing is a real thing," joked Gauff.
"That's looking so far ahead. Overall I lost to two quality opponents, Aryna in Madrid and Jasmine here. So yeah, I think I have a lot to improve, a lot that I can work on. I made the final with those errors. Made the final maybe not playing my best tennis.
"It just gives me confidence if I can find that good form heading into Roland Garros, I can do well there."
As a consequence of her run to the final, the American will rise to the world No. 2 position, meaning that she cannot face Sabalenka before the Roland Garros final.