In a large skillet, heat the olive oil over medium heat. Add the diced chicken and season with garlic powder, onion powder, smoked paprika, salt, and pepper. Cook until the chicken is browned and cooked through, about 5-7 minutes.
Pour in the chicken broth and bring to a simmer. Add the cream cheese and stir until melted and well combined.
Stir in the shredded cheddar cheese and crumbled bacon, mixing until the cheese is melted and the sauce is creamy.
In a separate pot, cook the gnocchi according to package instructions. Drain and add the cooked gnocchi to the skillet with the creamy chicken mixture.
Gently fold in the frozen peas and cook for an additional 2-3 minutes until heated through.
Serve hot, garnished with chopped fresh parsley.