Set the Instant Pot to ‘Sauté’ mode and heat the olive oil until shimmering.
Add the chicken pieces to the pot and cook for 3-4 minutes, stirring occasionally, until lightly browned but not fully cooked. Remove the chicken and set aside.
Add the sliced onion and bell peppers to the Instant Pot. Sauté for 3-4 minutes until they begin to soften.
Add the minced garlic, dried Italian seasoning, smoked paprika, salt, and black pepper. Stir well and cook for 1 minute until fragrant.
Return the browned chicken to the pot and stir to combine with the vegetables and spices.
In a small bowl, whisk together the chicken broth and tomato paste until smooth. Pour this mixture into the Instant Pot and stir to combine all ingredients.
Secure the Instant Pot lid and set the valve to ‘Sealing’. Select ‘Pressure Cook’ or ‘Manual’ mode and cook on high pressure for 8 minutes.
When the cooking time is complete, allow the pressure to release naturally for 5 minutes, then carefully perform a quick release to release any remaining pressure.
Open the lid and stir the chicken and peppers. Taste and adjust seasoning if needed.
Serve hot, garnished with chopped fresh parsley.