Trim any fat and cut the chicken breasts into bite-sized chunks.
In a bowl, toss the chicken with garlic powder, paprika, chili powder, and black pepper until evenly coated.
Place the seasoned panko in a shallow bowl and the hot sauce in a separate shallow bowl.
Working a few pieces at a time, dip chicken chunks into the hot sauce, then coat thoroughly in the panko; shake off excess and set on the air fryer basket in a single layer. Repeat in batches as needed.
Spray the tops of the nuggets generously with olive oil spray. Air fry at 400°F for 8 minutes, then flip the nuggets, spray the other side, and air fry another 8 minutes, or until cooked through and golden.
Serve hot with celery and carrot sticks and blue cheese dressing, if desired.