Season the chicken thighs on both sides with paprika, garlic powder, onion powder, salt, and black pepper. Set the Instant Pot to saute mode and add the olive oil. Once hot, sear the chicken thighs for about 2 to 3 minutes per side until golden brown. Remove and set aside on a plate.
Add the diced onion to the pot and cook for 3 minutes, stirring occasionally, until softened. Add the garlic and cook for 30 seconds until fragrant. Stir in the chicken broth, scraping up any browned bits from the bottom of the pot.
Add the rinsed rice to the pot and stir to combine. Place the seared chicken thighs on top of the rice in a single layer. Do not stir the chicken into the rice.
Lock the lid, set the valve to sealing, and cook on high pressure for 8 minutes. When the cook time is done, let the pressure release naturally for 10 minutes, then carefully turn the valve to venting to release any remaining pressure.
Open the lid and add the butter. Use two forks to shred the chicken directly in the pot, then gently fold everything together. Fluff the rice as you mix.
Taste and adjust salt and pepper as needed. Garnish with fresh chopped parsley and serve.