Preheat the air fryer to 400°F (200°C) for 5 minutes.
In a medium bowl, whisk together the eggs and water until well combined.
In a separate large bowl, combine the cornstarch, garlic powder, smoked paprika, salt, and black pepper.
Dip each shrimp into the egg mixture, allowing excess to drip off, then coat thoroughly with the cornstarch mixture. Place the coated shrimp on a plate.
Lightly spray the air fryer basket with cooking spray to prevent sticking.
Arrange the coated shrimp in a single layer in the air fryer basket, making sure they do not overlap. You may need to cook in batches depending on the size of your air fryer.
Spray the tops of the shrimp lightly with cooking spray.
Air fry the shrimp at 400°F (200°C) for 4 minutes. Flip the shrimp over, spray lightly again with cooking spray, and air fry for an additional 4 minutes or until the shrimp are crispy and cooked through.
Remove the shrimp from the air fryer and serve immediately with your favorite dipping sauce.