Preheat the air fryer to 400°F (200°C) for 5 minutes.
In a shallow bowl, combine the all-purpose flour, garlic powder, paprika, salt, and black pepper. Mix well.
In a second shallow bowl, whisk together the eggs and water until fully combined.
In a third shallow bowl, combine the panko breadcrumbs and grated Parmesan cheese.
Dip each tilapia fillet first into the seasoned flour mixture, coating both sides evenly. Shake off any excess flour.
Next, dip the fillet into the egg mixture, ensuring it is fully coated.
Finally, press the fillet into the panko breadcrumb mixture, coating both sides thoroughly. Set aside on a plate.
Lightly spray both sides of each breaded tilapia fillet with cooking spray to help achieve a crispy texture.
Place the fillets in a single layer in the air fryer basket, making sure they do not overlap. You may need to cook in batches depending on the size of your air fryer.
Cook the tilapia at 400°F (200°C) for 10 to 12 minutes, flipping halfway through, until the fish is cooked through and the coating is golden brown and crispy.
Remove from the air fryer and serve immediately with your favorite sides.