Team GB's women have finished bottom of Group B after losing their third consecutive match at London 2012.
The 10-5 defeat to Italy means that Britain will now face Group B winners Spain in the quarter-finals.
Tania di Maria and Giulia Enrica Emmoldo both recorded hat-tricks, while Simona Abbate and Teresa Frassinetti scored two each, as Italy won every quarter by a narrow margin.
Ciara Gibson-Byrne netted two of Britain's goals. Alex Rutlidge, Francesca Painter-Snell and Chloe Wilcox were the other scorers.
