Ian Foster's side will slip to fourth spot in the official rankings following the 23-12 defeat to Ireland.
The All Blacks have never been a low as fourth before since the World Rugby rankings began in 2003. The All Blacks ranking points will drop to 88.17, down from 92.12 when Foster took over as head coach before the 2020 season.
It equals New Zealand's lowest ever ranking score, following their semifinal defeat at the 2003 World Cup and in the wake of their maiden defeat to Argentina in November 2020.
The fourth placed ranking may only last a week as the All Blacks look to hit back in the third and final test in Wellington next weekend.
South Africa will drop from number one following their first ever home defeat to Wales this morning with France now the new top team in the world. It is the first time France have ever held the top spot.
France have gone on an impressive run after beating the All Blacks last year before winning the Six Nations title. They have had back-to-back wins over Japan in recent weeks.
Ireland move into second following their first win in New Zealand with South Africa in third ahead of the All Blacks.
England's second test win over Australia will see them leapfrog the Wallabies into fifth spot.
The latest rankings are not ideal for World Rugby heading into next year's World Cup. It means the top four ranked sides are on the same side of the draw with France and the All Blacks in pool A and Ireland and South Africa in pool B.