Pat the shrimp completely dry with paper towels. Season them lightly with a pinch of salt and pepper. Thoroughly drying the shrimp is key to getting the coating to stick and crisp up properly.
Set up a breading station with three shallow bowls. In the first bowl, place the flour. In the second bowl, beat the eggs. In the third bowl, combine the panko breadcrumbs, garlic powder, smoked paprika, cayenne pepper, salt, and black pepper and toss to mix.
Working one at a time, dredge each shrimp in the flour, shaking off the excess. Dip it into the beaten egg, letting any extra drip off, then press it firmly into the seasoned panko mixture, coating all sides evenly.
Preheat the air fryer to 400 degrees F. Arrange the breaded shrimp in a single layer in the basket, making sure they do not touch or overlap. Spray the tops generously with cooking spray.
Cook for 4 minutes, then carefully flip each shrimp. Spray the other side with cooking spray and cook for another 3 to 4 minutes until the coating is deep golden and crispy.
Serve immediately with lemon wedges and your choice of cocktail sauce or tartar sauce on the side. These are best enjoyed right out of the air fryer while the panko coating is at its crunchiest.