Place the washed and halved baby red potatoes in a large mixing bowl.
Add the olive oil, garlic powder, onion powder, Italian seasoning, smoked paprika, grated Parmesan, salt, and pepper to the bowl and toss until the potatoes are evenly coated.
Preheat the air fryer to 400°F (200°C) if required by your model; otherwise set it to 400°F and let it come to temperature.
Arrange the potatoes in a single layer in the air fryer basket without overcrowding; cook in batches if needed.
Air fry at 400°F for 10 minutes.
Shake the basket and stir the potatoes, then continue cooking for another 8–10 minutes, until golden and tender when pierced with a fork.
Transfer to a serving dish, squeeze a little lemon juice if desired, and sprinkle with chopped fresh parsley before serving.