I suspect the definition in this case includes something like, "run by powerful people who are unchecked and may not have my best interests at heart." which, if so, would be quite a burden to put on one word.
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Why is an institution implementing an ML system without understanding how it could be wrong any different to an institution implementing a database without having that understanding?
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Cannot even reverse/engineer debug. I think a better grouping is that ML is opaque like humans, but as humans we have some insight into human foibles. Traditional databases (or programs) are like bureaucratic rules: they can be a maze, but you can potentially figure them out. 1/2
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