The I-17 was test flown in early 1940 and almost immediately accepted by Latvian Air Force.

Due to the pressures of the war, the I-17 prototype was accepted almost without testing and serial production started.

[1] Six units of the I-17 were built and there was an order for another six, but that was halted following the Soviet occupation of Latvia in June 1940.

After the occupation of Latvia by Nazi Germany in July 1941, the I-17 was also examined and tested by the Luftwaffe and, like the VEF I-16, was used by the aviation school in Torun.

Around 2009, it was reported that the Director of the Civil Aviation Agency of Latvia Māris Gorodcovs had begun work on building a replica of the I-17.