Preheat the air fryer to 380°F (190°C).
Carefully slice the jalapeno peppers in half lengthwise and remove the seeds and membranes for less heat if preferred.
In a mixing bowl, combine the softened cream cheese, shredded cheddar cheese, garlic powder, onion powder, smoked paprika, salt, black pepper, and chopped bacon (if using). Mix until well combined.
Spoon the cheese mixture into each halved jalapeno pepper, filling them generously.
Lightly spray the air fryer basket with cooking spray if desired to prevent sticking. Arrange the filled jalapeno poppers in a single layer in the air fryer basket.
Cook in the air fryer for 10 minutes, or until the jalapenos are tender and the cheese is bubbly and slightly golden.
Carefully remove the poppers from the air fryer and allow them to cool for a few minutes before serving.
For extra heat, you can leave some seeds in the jalapenos.
Serve with ranch or blue cheese dressing for dipping if desired.