Preheat the air fryer to 400°F (200°C) for about 5 minutes.
Wash the baby potatoes thoroughly to remove any dirt, then pat them dry with a towel.
In a mixing bowl, combine the olive oil, garlic powder, onion powder, paprika, dried rosemary, salt, and black pepper.
Cut the baby potatoes in half or leave them whole if they are small. Add the potatoes to the mixing bowl and toss them until they are evenly coated with the oil and seasoning mixture.
Place the seasoned baby potatoes in the air fryer basket in a single layer. If necessary, do this in batches to avoid overcrowding.
Air fry the potatoes at 400°F (200°C) for 15-20 minutes, shaking the basket halfway through cooking to ensure even crispiness.
Carefully remove the potatoes from the air fryer and transfer them to a serving dish.
Garnish with fresh parsley if desired and serve.