Bruce was yesterday unveiled by Villa as the replacement for Roberto Di Matteo, who was sacked after just 12 games in the hot seat last week.
Bruce inherits a side sitting 19th in the Championship with just one win so far, but the former Hull boss believes there is enough quality in the squad to bid for an immediate return to the Premier League.
He said: “I realise we have to turn this around and I’m quietly confident with the group of players I’ve seen on paper.
“When you look at the squad we are capable of mounting a challenge and that can be this year too. We’re capable of being a very good team.
“They’ve been a little bit unfortunate but certainly the qualities are there and it’s my job to go and get the best out of them.”
Bruce has plenty of experience of getting clubs out of the Championship and into the Premier League and managed it twice while in charge of Villa’s city rivals Birmingham.
The 55-year-old also twice took Hull into the top flight during his four years with the Tigers and he is hoping to add another promotion to his CV at Villa Park.
Asked about his St Andrew’s past, Bruce said: “I understand the rivalry, of course we do. We’ve all been here long enough and it was a long time ago. I hope that I can bring (that) success.
“When I went to Birmingham we were 15th at Christmas and went on a run that got us promoted.
“I hope I can bring that success here, now, that’s what this club needs. We need to get back in the big league and the challenge of that alone was the resounding factor of why I came here.”
Bruce has been out of work since leaving Hull this summer but brings with him almost two decades of managerial experience.
Aside from his six years at Birmingham, the former Manchester United and Blues defender has had stints at the likes of Sunderland, Crystal Palace and Wigan.
The 55-year-old admits, though, that his new post probably trumps all of them in terms of the size of the club and the size of the challenge facing him.
He said: “I have to be really careful but I do believe I have one of the biggest clubs in the country.
“It’s a privilege to manage, it’s arguably the biggest club I have managed and the biggest challenge of all. The expectation is always going to be there.”