Preheat a 5- to 6-quart air fryer to 400°F (205°C) for about 3 minutes, if your model recommends preheating.
Pat the chicken breasts dry with paper towels: Cut them into approximately 1-inch (2.5 cm) pieces, keeping the pieces as similar in size as possible.
Place the chicken in a medium mixing bowl and add the olive oil. Toss until every piece has a thin, even coating.
Add the smoked paprika, garlic powder, onion powder, salt, and black pepper. Toss thoroughly until the seasoning is evenly distributed and no large unseasoned patches remain.
Place the chicken pieces in the air-fryer basket in a single layer with a little space between them. Depending on the size of your air fryer, cook in two batches rather than overcrowding.
Air fry at 400°F (205°C) for 5 minutes. The chicken should begin turning opaque and lightly golden around the edges.
Shake the basket thoroughly or turn the chicken pieces with tongs so different surfaces are exposed to the hot air.
Continue air frying for another 4 to 6 minutes, depending on the size of the pieces and your air fryer. The chicken should be golden in spots with no translucent areas.
Insert an instant-read thermometer into one of the largest pieces. The chicken is safely cooked when it reaches 165°F (74°C).
If cooking in batches, transfer the first batch to a clean plate and repeat with the remaining chicken. Avoid piling uncooked chicken into the basket because overcrowding reduces browning.
Let the cooked chicken bites rest for 5 minutes. This helps the juices settle inside the meat.
Sprinkle with chopped parsley and serve with lemon wedges, if desired. Serve warm with your preferred side dishes or dipping sauces.