Prepare the potatoes: cut baby red potatoes into bite sized pieces and soak in cold water for 30 minutes. Drain the potatoes and dry well.
Prepare the sausage: cut smoked sausage or kielbasa into ½ inch thick slices and set aside.
Preheat air fryer to 400 degrees F.
Season the potatoes: while the air fryer heats up, season the potatoes with olive oil, salt, black pepper, garlic powder, onion powder, Italian seasoning and smoked paprika. Stir to combine.
Cook the potatoes: add the potatoes to the air fryer and air fry at 400 degrees for 18-20 minutes or until the potatoes are crispy and brown. Remove the potatoes from the air fryer basket and cover with foil to keep them warm.
Reduce the Air Fryer temperature to 380 degrees.
Arrange smoked sausage slices in a single layer in the air fryer then air fryer for 8 minutes or until lightly browned and crispy.
Add the potatoes and smoked sausage to a serving dish and serve.