Chelsea fell to a shock 2-1 defeat to the Premier League's basement boys on Saturday, leading Wilkins to think the Chelsea's title challenge may be over before it began.
Wilkins knows a thing or two about Chelsea having spent six years of his playing career there and having had several spells at the club as assistant manager since retiring and he's not particularly confident in his former side going forward.
The 61-year-old told 'Sky Sports': "It's massively damaging for Antonio Conte (The defeat to Palace).They are nine points adrift of Manchester City having played them at Stamford Bridge. At the moment their title chances are disappearing rather rapidly. But I feel for him because I would hate to see more defeats crop up because I think he has done a good job.
"They didn't go down fighting and went down with a whimper. It is crippling for Chelsea to lose in that manner. They just had no energy or life and I was disappointed."
When asked whether he was worried about Chelsea's ability to make up the now nine-point gap between them and league leaders Manchester City, Wilkins said: "It wouldn't be if we have two games to play against them. But we don't. We have already lost to Manchester City and this side is absolutely rampant.
"Whoever they play against they are scoring bucket loads of goals. To claw that back is a tough gig. They have got to go on a run like after Arsenal beat us last year to stand any chance at all."
Meanwhile, the former star, who also had spells with Manchester United, AC Milan and PSG during a glittering playing career, also believes that Chelsea's squad is weaker than it was this time last season.
"I think the squad is weaker," he explained. "We have replaced Matic for Tiemoue Bakayokou. In the coming years, he (Bakayokou) will become an exceptional player because he has that stature and ability.
"He scored on Saturday but is not a great scorer from the middle of the pitch. Neither was Matic but he had the know-how of how to play that position. Bakayoko is still growing into that position.
"Morata up front has done very well but for me, he is no Diego Costa and unfortunately we have now lost Morata as well so we are having to rely on Batshuayi. On Saturday he was a liability. His movement is almost null and void. When you are playing in a team like Chelsea your movement has to be first-class up front."
So, if Wilkins is to be believed things aren't looking to rosy for Antonio Conte and Chelsea.