IO Interactive lighting artist Stefania Hernandez has said that the PlayStation 5?s ray tracing technology will help to create more detailed 3D environments, utilizing ?accurate light bounces, reflections, and shadows.?
Speaking to GamesRadar, Hernandez explained the difference between current-gen and next-gen technology in terms of realism:

PB = PB || {};
PB.gptStandAlone = PB.gptStandAlone || {};
PB.gptAutoRefresh = PB.gptAutoRefresh || {'gptAds':[], 'gptStandAlone':[]};
admiralCookie = readAdmiralCookie();

googletag.cmd.push(function() {
var standAloneSizeMapping = googletag.sizeMapping().addSize([0, 0], []).addSize([750, 0], [[300, 250]]).addSize([980, 0], [[300, 250]]).build(); PB.gptStandAlone['ros_300x250_p_slot4_1577631971'] = googletag.defineSlot('/4403/cr/playstationlifestyle/ros', [[300, 250]], 'ros_300x250_p_slot4_1577631971') .defineSizeMapping(standAloneSizeMapping) .addService(googletag.pubads())
.setTargeting('pos', 'P').setTargeting('content_detail', '0').setTargeting('kw', 'in-article').setTargeting('coppa', '0').setTargeting('site', 'playstationlifestyle');
googletag.enableServices();
googletag.display('ros_300x250_p_slot4_1577631971');

if (admiralCookie === null || admiralCookie['val'] === 'false') {
googletag.pubads().refresh([PB.gptStandAlone['ros_300x250_p_slot4_1577631971']]);
}

});

...