Preheat the air fryer to 390°F.
Set up a dredging station by combining breadcrumbs, parmesan cheese, Italian seasoning, garlic powder, chili powder, salt, and pepper in a shallow bowl. In a separate shallow bowl, crack and whisk eggs with a pinch of salt and pepper.
Coat the chicken: Pat the chicken dry with a paper towel. Dip each piece of chicken into the egg mixture, shake off the excess, and coat it in the breadcrumb mixture, pressing the breading onto the chicken. Place the coated chicken on a plate. Repeat for all pieces.
Cook the chicken: Spray the air fryer basket with olive oil spray. Place the chicken cutlets in the basket in a single layer without overlapping. Spray the tops of the chicken with olive oil spray and cook for 5 minutes. Flip the chicken, spray again, and cook for another 5 minutes.
Add sauce and cheese: Open the air fryer and spoon tomato sauce over each piece of chicken. Top with shredded mozzarella and a sprinkle of parmesan. Cook for an additional 2 minutes, allowing the cheese to melt.
Serve: Remove the chicken from the air fryer and let it rest for 5 minutes. Garnish with chopped basil and parsley before serving. Enjoy with a spinach salad or your favorite pasta!