Thorne, restored to the captaincy because of Richie McCaw's absence from the starting line-up, warned the side must improve ahead of their Tri-Nations opener in South Africa next week.
Thorne told Sky Sports: "We've a lot to work on that's for sure. It was just messy really and the guys are well aware of that, so we've got a long way to go before we reach where we want to be.
"It had to really but you have to give credit to Canada. They came out pumped up and gave the game of their lives and really got stuck into it.
"I just think we weren't accurate at the breakdown early on and that was the main cause of the problems and it just flowed on from there. We've got to step it up or we'll be in trouble."
In contrast, Canada captain Morgan Williams was positive about his side's showing.
The former Saracens and Stade Francais scrum-half said: "In the first half I thought we came out very strong. Our defence, I thought, put us on the back foot, but I'm hugely proud of our guys for the effort they put in today.
"When you play against opposition like the All Blacks, it's hard to expect to win but I think we put in a good effort today."