Preheat Air Fryer to 400˚F.
Place cut potatoes, onions, and peppers in a large ziploc bag. Pour in the oil and season with seasoned salt, pepper, Italian Seasoning, and garlic powder. Close the bag; gently massage the bag until all vegetables are coated.
Spray the basket of the air fryer with cooking spray.
Transfer the potatoes, onions, and peppers to the basket. Cook for 15 minutes, shaking the basket about halfway through cooking.
After 15 minutes, add in the sausage and continue to cook for 5 more minutes, or until potatoes are tender.
Transfer to a serving platter, garnish with parsley, and serve.