(CNN) -- Beaten again by a record-breaking effort from U.S. rival Ryan Lochte at the world swimming championships in China, Michael Phelps says he now has all the motivation he needs to bounce back at next year's London Olympics.
Defending champion Lochte claimed the men's 200-meter individual medley title on Thursday in one minute 54 seconds, breaking the record he set in Rome in 2009 -- when Phelps did not swim in the event.
He shaved a tenth of a second off that time to register the first long-course world record since the high-tech, polyurethane swimsuits were banned in 2010.
Lochte's lead over Phelps -- who came home in 1:54.16 -- was never more than the 29-hundredths of a second he held at the final turn, having moved to the front in the second backstroke leg.
"That's why we have records -- to get broken," Lochte told the U.S. Swimming website.
"I'm just happy that all that hard work I've done this year, and dedication is definitely paying off. Hopefully everyone now can start realizing, 'Hey, it's possible.' Hopefully a lot more records can fall."
Phelps, who has won a record 14 Olympic gold medals after bagging an unprecedented eight in Beijing 2008, was beaten by Lochte for the second time in Shanghai following his runner-up finish in the 200m freestyle on Wednesday.
"I think that race is going to be a lot of motivation for the next year," said Phelps, who won the 200m butterfly on Thursday. "There's a lot of frustration right now going through my head, and this is going to help me through the tough months of training for the next year.
"(Lochte) is super focused right now, and I think you can see that. He keeps putting the races together that are helping him win. To be honest, he's just more prepared. That's really what it comes down to. Races are always won by people who are most prepared."
At the last world championships in Italy, Phelps saw his previous dominance challenged by swimmers using the new-generation suits that were banned soon after.
On Thursday he predicted that more of the best times set before the ban will be falling in the near future.
"I sat there two nights ago at dinner, and I was talking to some of the coaches about it that this was going to be the first world record that was going to be broken," Phelps said.
"It says something that we're still able to do those times, and that it's not impossible for us to see world records right now. I think we're going to start seeing more, and hopefully they're more often."
The U.S. also won gold in the women's 4x200m freestyle relay, with Missy Franklin, Dagny Knutson, Katie Hoff and Allison Schmitt heading off Australia by half a second and defending champions China back in third.
Franklin also won bronze in the women's 50m backstroke, which was won by Russia's Anastasia Zuevea from Aya Terkawa of Japan.
China won gold and bronze in the women's 200m butterfly, as Jiao Liuyang finished 0.04 seconds ahead of Britain's Ellen Gandy and 0.45s in front of Liu Zige.
James Magnussen confirmed his undoubted promise as the 20-year-old became the first Australian to win the men's 100m freestyle title, heading home Canada's Brent Hayden and France's William Meynard.
Defending champion and world record-holder Cesar Cielo finished back in fourth place.
At the start of the championships, Magnussen helped Australia earn a surprise victory in the 4x100m relay, condemning Phelps' U.S. team to third place.
Leading off the team, he set the fastest 100m time by a swimmer not using a banned suit since Dutchman Pieter van den Hoogenband, the 2000 and 2004 Olympic champion.