Cut the 1 pound round steak into serving-sized pieces. Tenderize if desired by pounding with a meat mallet.
In a shallow dish, combine 1/2 cup flour 1 teaspoon salt,1/2 teaspoon black pepper and g1 teaspoon garlic powder. Dredge each piece of steak in the flour mixture, shaking off excess.
Set your air fryer to 400°F (200°C).
Spray the air fryer basket with cooking spray. Place the dredged steak pieces in the basket and drizzle with 1 tablespoon olive oil. Air fry for about 8-10 minutes, flipping halfway through, until browned.
Remove the steak from the air fryer. Layer the 1 cup diced tomatoes, 1/2 cup sliced onions, 1/2 cup bell peppers and 1 teaspoon Italian seasoning on top of the steak pieces.
Return the topped steak to the air fryer. Cook for an additional 5-7 minutes, or until the vegetables are tender and the steak is cooked through.
Remove from the air fryer and let rest for a few minutes before serving.