Preheat your air fryer to 400°F (200°C). Toss the quartered potatoes with 1 ½ tablespoons of olive oil, garlic powder, smoked paprika, salt, and pepper. Place the seasoned potatoes in the air fryer basket and cook for 15 minutes, shaking the basket halfway through for even cooking.
While the potatoes are cooking, season the steak cubes with salt, pepper, and the remaining olive oil. Set aside.
Once the potatoes have cooked for 15 minutes, push them to one side of the air fryer basket. Add the steak bites to the other side and cook everything together for an additional 7-9 minutes, shaking the basket halfway through. Adjust cook time depending on your preferred doneness of the steak.
While the steak and potatoes are cooking, combine the melted butter, minced garlic, and chopped parsley in a small bowl.
Once the steak bites and potatoes are done, remove them from the air fryer and toss with the garlic butter. Serve hot with optional lemon wedges on the side for a burst of freshness.