Parker is the only change of player in the team, with Ardie Savea moving to the openside flank in place of Du'Plessis Kirifi.
Coach Scott Robertson said, "We hadn't played for a month, and we needed battle-hardened cohesion in our group and also the opportunity for Simon, who's had a couple of games under his belt in the NPC. It was a tough call on Du'Plessis Kirifi; he's played well every opportunity he's had. We needed a little tweak to the forward pack.
"Simon has trained well in the last two weeks and he's ready for it."
Robertson said Parker had been in their sights for some time, and after recovering from injuries, he had been consistent during the Super Rugby Pacific campaign.
The game also marks hooker Codie Taylor's elevation to the 100 Tests Club. He will be its 14th member.
Robertson said, "Codie's a special man, a champion off the field. He's got a great story, born and bred in Horowhenua Kapiti, in the footsteps of Dane Coles. They've got a nice little combination, and he's the second hooker to reach the 100 milestone [behind Keven Mealamu].
"He's resilient, he's tough, he's skilful, and he's an athletic rugby player. But, more importantly, he's a great man in the environment and a proud All Black."
Robertson said a response is expected from Argentina after their first Test loss.
"The game went into the balance for a little while. They're a great attacking squad."
The beauty of Tests back-to-back is the chance to respond, and the All Blacks expect it to be a tough contest.
Lock Fabian Holland said, "If we don't finish opportunities, then they're going to capitalise and come back like they did in the first game. We have worked a lot on our polishing and focused on what we need to do better.
"In the first half, we were clinical and things went according to plan, then, in the second half, the crowd got into it, the Argentinians got their tails up and we started making mistakes.
"We reflected on the second half and know what we need to do better."
With Wallace Sititi and Tamaiti Williams on the substitutes bench, and Parker making his debut, there will be some big players on the field.
"Wally is one of those guys I grew up with playing in the Under-20s. Sharing the field with him is special for me. We've done that same journey, but this will be the first time I'll be sharing the field with him [for the All Blacks].
"And Tamaiti is an amazing player. He's physical and has amazing skills. It's good they're on our side and awesome to have them back."
First five-eighths/fullback utility Damian McKenzie said part of the All Blacks' preparation has been dealing with contestable kicks.
"The Argentinians are great at the aerial game. We know the challenge we face this weekend. They will be hurt and will be coming out to put in a good performance.
"We've been deep in our preparation and making sure we've sharpened everything we can.
"We're not going to win all the moments in the game, but it is making sure we're consistent throughout the 80 minutes."
As a Chiefs teammate of Parker, McKenzie said he had seen all the work Parker has put in this year, and he believes he deserves his opportunity.
"He's a guy who doesn't say a lot but speaks a lot with his action. He's a big, powerful body."
LIVE on Sky Sport - Sunday 24 August: All Blacks vs Argentina, 09:10AM NZST (6.10PM ART, Saturday 23 August). The match is also available in selected territories on NZR+, learn more HERE.
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All Blacks match-day 23 (Test caps in brackets; * denotes debutant):
1. Ethan de Groot (33) 2. Codie Taylor (99) 3. Fletcher Newell (26) 4. Scott Barrett (82) (Captain) 5. Fabian Holland (4) 6. Tupou Vaa’i (41) 7. Ardie Savea (98) (Vice-Captain)
8. Simon Parker * 9. Cortez Ratima (15) 10. Beauden Barrett (137) 11. Rieko Ioane (84) 12. Jordie Barrett (72) (Vice-Captain) 13. Billy Proctor (5) 14. Sevu Reece (35) 15. Will Jordan (45)
IMPACT: 16. Samisoni Taukei’aho (34) 17. Tamaiti Williams (18) 18. Pasilio Tosi (10) 19. Josh Lord (7) 20. Wallace Sititi (10) 21. Finlay Christie (24) 22. Quinn Tupaea (16) 23. Damian McKenzie (65)