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Why did Italy prefer the SPAD over the Ansaldo A.1 in 1917?
Short answer
In 1917 there was no clear-cut preference: the A.1 wasn't even accepted by the Corpo Aeronautico Militare until December that year, because test pilots remained unconvinced. It improved on the SVA.5, but was still less agile than French fighters, and the SPAD S.XIII held the front line of fighter duty.

The tests weren't convincing
Evaluation of the new Ansaldo A.1 Balilla fighter was entrusted to Baracca, Piccio and Ruffo di Calabria. The first prototype was finished in July 1917, but the Corpo Aeronautico Militare didn't accept it until December that year, and the reluctance stemmed from test pilots not being enthusiastic about it. They acknowledged that the A.1 was better than the SVA.5, but the aircraft remained less agile than the French fighters of the day. The comparison was made against French-designed and -built types already flying with Italian squadrons, above all the Nieuport 17, which Macchi also manufactured in Italy.
The SPAD S.XIII held the front line
Most A.1s ended up in second-line duties, on home defense missions, while the front-line fighters were the SPAD S.XIII, considered better and far more modern. The A.1 was, nonetheless, the only Italian-designed fighter of the First World War to be produced in Italy.
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