Preheat the air fryer to 400°F (200°C) for 5 minutes.
In a large bowl, combine the cubed potatoes with 1 tablespoon of olive oil, garlic powder, smoked paprika, salt, and black pepper. Toss well to coat evenly.
Place the seasoned potatoes in the air fryer basket in a single layer. Cook for 15 minutes, shaking the basket halfway through cooking to ensure even crisping.
While the potatoes cook, in the same large bowl, toss the sliced bell peppers with the remaining 1 tablespoon of olive oil and dried oregano.
After the potatoes have cooked for 15 minutes, add the seasoned bell peppers on top of the potatoes in the air fryer basket.
Continue cooking for an additional 5 minutes until the peppers are tender and the potatoes are golden and crispy.
Remove the potatoes and peppers from the air fryer and transfer to a serving dish. Serve immediately.