Turn the Instant Pot to "Sauté" mode. Add the olive oil to the pot and let it heat up.
Add the sausage slices and sauté until browned, about 3-4 minutes. Remove the sausage and set aside.
Sauté the vegetables:
In the same pot, add the chopped onion, bell pepper (if using), and garlic. Sauté for 2-3 minutes until softened.
Add the rice and spices:
Stir in the rinsed rice, paprika, garlic powder, onion powder, oregano, cayenne pepper (if using), and a pinch of salt and pepper. Cook for about 1-2 minutes to toast the rice lightly.
Add the liquid:
Pour in the chicken broth and diced tomatoes with their juices. Stir to combine.
Pressure cook:
Add the cooked sausage back into the pot and stir everything together.
Close the Instant Pot lid, make sure the valve is set to "Sealing," and select "Manual" or "Pressure Cook" for 10 minutes on high pressure.
Release the pressure:
Once the cooking time is complete, allow for a natural pressure release for 5 minutes. After that, switch the valve to "Venting" to release any remaining pressure.
Notes
Taste and adjust seasoning with more salt and pepper if necessary.
Serve hot, and optionally garnish with fresh parsley or sliced green onions.