The controversial Italian has only scored once since joining from AC Milan for £16m in the summer, and recently received criticism for swapping shirts with Pepe at half time during the Reds' 3-0 defeat to Real Madrid in the Champions League.
Some reports have claimed that the 24-year-old has until Christmas to prove his worth or face the axe at Anfield, but Taylor believes that Balotelli will find his feet at the Merseyside club.
"People say Liverpool took a gamble, but at £16m he's probably a gamble worth taking," the South Wales Evening Post quotes Taylor as saying.
"We'll have to see if it comes off, but quality always comes through and if anyone can get the best out of him, Brendan can."
Ballet could line up against Swansea in tonight's Capital One Cup tie at Anfield.