The Rossoneri faced a raft of changes at the start of the season following the departure of veterans like Alessandro Nesta, Gennaro Gattuso, Pippo Inzaghi and Clarence Seedorf while key duo Thiago Silva and Zlatan Ibrahimovic left for PSG.
After a rocky start which saw them win three of their first 10 league games of the season, Milan have bounced back to form in November and won eight of their last 10 league games.
Galliani insists that they should be proud of their campaign so far considering the changes they had to face.
"I think we're having a great season," he said.
"Things could have gone a whole lot worse after completely changing the squad with 12 new players. Instead, I'm proud of what club are doing.
"The two defeats at the start of the season against Atalanta and Sampdoira weighed us down. But if you look at the results of the last 16 games, we've won 34 points, which means we'd be top ahead of Juventus.
"I can look at the positives. We have a young team and we finished the Cagliari game with one player born in 1994, two in 1992, and two from 1990."
Mario Balotelli's arrival at San Siro has coincided with Stephan El Shaarawy's drop in form, but Galliani is confident that the duo can play together.
"There is no incompatibility," he continued. "One is a central striker, and the other a wide attacker. El Shaarawy needs to catch his breath - that's normal.
"Balotelli is a star and it's to everyone's advantage that he's back in Italy."
AC Milan will play Parma this weekend before hosting Barcelona in the Champions League last-16 tie next Wednesday.
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