Sony Interactive Entertainment stated that the Demon's Souls remake on PS5 doesn't use Ray Tracing. We first learned that via an interview published by our Spanish peers at Level Up. Sony told Level Up that it's a time-cost issue which led to Demon's Souls dropping the PS5's Ray Tracing. Moreover, our Japanese comrades at Game Spark contacted Sony to reconfirm:

Game Spark: "Does Demon's Souls uses Ray Tracing?"

SIE: "PS5 game Demon's Souls does not supports Ray Tracing. In this remake, we greatly increased the number of polygons, objects density, and texture size. Our technology allowed us to create beautiful graphics with real time rendering, pushing out to the max the details and the richness of the world of Demon's Souls."

Additionally, Game Spark noted that while the initial Japanese press releases for the remake mentioned Ray Tracing, the ones starting September 2020 removed that mention.

Ray Tracing is one of the technical terms Sony has been using to sell the PS5. Ray Tracing allows games to realistically simulate light, its movements, and its reflections.

The way Ray Tracing is used and whether it makes a game looks better or not also depends on the game itself and its environments. For example, when talking about a possible PS5 port of Final Fantasy XIV, Naoki Yoshida explained Ray Tracing wouldn't change anything for the MMO. So basically Demon's Souls could be prettier with it. Or maybe it wouldn't. We don't know. In my Unneeded Opinion the game looks pretty great already if you're into games always pursuing highly realistic graphics.

One thing sure is we don't know much about the technical aspect of the Demon's Souls remake, and probably won't know until release. Digital Foundry made a video based on a trailer if you're interested. An official video for the game's OST was published too.

Demon's Souls will be out with PS5  in USA on November 12. You can preorder it on Amazon to support DualShockers.