Preheat the air fryer to 375°F (190°C) for 5 minutes.
Pat the whole tilapia dry with paper towels.
Rub the olive oil all over the fish, including inside the cavity.
In a small bowl, mix together salt, black pepper, garlic powder, smoked paprika, and dried thyme.
Season the fish evenly with the spice mixture on both sides and inside the cavity.
Stuff the cavity of the tilapia with lemon slices and fresh parsley sprigs.
Place the tilapia in the air fryer basket, making sure it lays flat and is not overcrowded.
Cook the tilapia in the air fryer at 375°F (190°C) for 20 minutes, flipping halfway through at 10 minutes to ensure even cooking.
Check for doneness by inserting a fork into the thickest part of the fish; the flesh should be opaque and flake easily.
Carefully remove the tilapia from the air fryer and transfer to a serving plate.
Serve immediately with additional lemon wedges if desired.